Employment in South Africa

According to the report only 41% of South Africans aged 16 to 64 have any kind of a job, while in China the figure is 70% and in high-growth developing nations like Indonesia and Brazil is around 65%.

The research behind the report found that South Africa’s stringent labour market regulations made it expensive to employ people and that mostly skilled and experienced people were employed. Thus the country is sinking deeper into unemployment. The report calls for allowing young, unskilled and inexperienced people to be employed at lower wages, something current labour legislation prohibits, while labour costs were driving up unemployment.

And, Richard Pike, CEO of one of South Africa’s biggest employment services groups, Adcorp, says militant trade union activism is one of the major contributing factors to South Africa’s high unemployment rates. He also defended the contract employment of 3.9 million workers, saying rising contract employment was not unique to South Africa.

via Labour watch

CPA now allows more than 10% cancellation fee

Cellphone operators in South Africa are successfully persuading the government to make changes in the recently introduced Consumer Protection Act, particularly on the cancellation of contracts, The New Age can reveal.

The new law had been criticised by some sectors due to the powers it gives consumers. Operators in particular felt that the proposed regulation on cancellation fees of contracts, which was pegged at 10% of the contract value, didn’t make business sense for them.

via Government backs down on contracts | The New Age Online